Currency: What’s Happening Between the US Dollar and the Iranian Rial?

Juhi Mirza
Images of Iranian Rial banknotes
Image Source: Unsplash

In a mix of currency wars, the Iranian rial is the latest currency to fall prey to the gnawing hands of the US Dollar. The Iranian rial has fallen to a new low against the USD, bringing Iranian economic progress to a standstill.

The Iranian rial has notably fallen 610,000 tomans against the USD. Dubbed a drastic dip documented by Rial to date, the price fall signals Iran’s worsening economic prospects, jeopardizing the nation’s monetary prestige. 

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Iranian Rial’s Fall from Grace

iran flag brics
Source: Lonely Planet

On March 24, the US dollar crossed all-time highs against the Iranian rial. The IRR took a massive dip as the USD went past the 610,000 rial mark for the first time. 

Iran has been battling intense sanctions and restrictions hampering its economic progress for decades. The region is rife with political instability and mayhem. The political instability has further fueled the economic disparity, resulting in Iran’s isolation on a global scale.

Speaking about the recent IRR fall, notable policy expert Sarah Raviani took to X to share her opinion on the Rial’s recent valuation dip. She emphasized how the Iranian administration and economic status are in absolute shambles.

Raviani later outlined how economic mismanagement and rising corruption are some of the primary causes of Iran’s monetary and strategic decline. 

“Yesterday, the dollar broke a new record on the Iranian currency market, surpassing 61,000 tomans. This marked its highest rate yet. Basic goods are rapidly becoming unaffordable and unattainable for the Iranian people. Gross economic mismanagement and corruption under the Islamic Republic have deeply scarred Iran’s economy.” 

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Raviani quickly added another update outlining how Iran’s system is undergoing a system failure. She shared how the rising unemployment, inflation, and corruption have been slowly seeping into space, eroding the nation from all sides.

“Rampant inflation, soaring unemployment, and a severely devalued currency are glaring symptoms of this systemic failure and corruption.” 

Iran’s Sanctions and Currency Mayhem

Iran has long been battling with the strict sanctions imposed by the United States of America. The region had the most sanctions imposed on it before Russia took the crown in 2022. The first set of sanctions was imposed on Iran in 1979 on the grounds of a seizure that a bunch of Iranian students conducted to destabilize the US embassy in Tehran. 

The other set of sanctions was imposed on Iran primarily to curb the nation’s illicit nuclear power activities. Later on, the sanctions encompassed a large part of the Iranian administration’s regime, where interventions were made to target Iran’s oil, gas, and petrochemical exports. 

Furthermore, as the years passed, the sanctions imposed on Iran took a serious toll on the nation’s economic stature. The currency’s downfall has further been solidified by rising political instability and a stricter administration, adding to the growing woes of its citizens.